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Question - The equity section of the Balance Sheet of DenPrac Ltd at the 30th June 20X2 is as follows:
EQUITY
Share Capital $10,000,000
Reserves 356,760
Retained Profits 3,243,578
TOTAL $13,600,338
The Share Capital is represented by 2,000,000 shares which are fully paid.
On the 30th September 20X2 the company offers a one-for-one rights issue to all shareholders at a discount price of $4.90 per share. All but 150,000 shareholders take up the offer. All money is received and the share issue occurs on the 30th November 20X2.
Required - Complete the general journal entry/s of DenPrac Ltd to record the rights issue of shares.
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